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closed Positions
INTC: 01.23.20 – 03.27.20
Equity | Intel Corp | Status: Closed
Adjustment #5
View original trade
02.28.20
This position has officially jumped the shark, as they say. INTC had a horrible close yesterday, followed by a horrible open this morning. I had no choice but to swallow my pride and my down to the first to cut my in half and try to stop the bleeding. I am now left with a $12.50 and have only collected $10.45 against it. This means that, best case scenario, I lose $2.50.
All is not lost, however. While this position is ugly, it is the only one so far that I've had to invert. All of my other position still stand to make good money so as long as I can limit loss on this problem, I should be able to come out on top. Once it gets to this point management is limited. The best I can do is hope INTC stays within my strikes long enough for the remaining to decay. If the share price rallies back to around $59-60 (the center of my strikes), I may consider uninverting them and tightening up the strangle in an attempt to restore profit potential. Doing so would also give me more ideal strikes to work with if the chaos were to continue. If I am unable to restore profit potential, I may just close it altogether and take my lumps.
Moral of the story is, sometimes the market takes you down but if you stay strategic and there's always a path forward. Luckily, this is also a low enough priced product that I have been able to endure the pain so far. I certainly don't like it, but I have the opportunity to fight back because I kept my risk sized appropriately. It will be interesting to see how things play out next week!
Risk Profile:
Strategy: Roll Down Call
btc 1 apr 17 57.5 call
sto 1 apr 17 52.5 call
Fill Price: $2.50 credit
Position Analysis
U/L Price: $54.30
IV: 42.7%
IVR: 118.0
Liquidity: 4/4
Position: Short APR 17 52.5/65 Inverted Strangle
POP: 0%
Cost Basis: $10.45
Risk: Undefined
BPR: $1600
Max Profit: -$2.05
Max Loss: Unlimited
Extrinsic Value: $287.00
Net Delta: 26.71
Net Theta: 4.981